On Tuesday, August 5 oil prices dipped below $120 a barrel in anticipation of an afternoon decision by the Federal Reserve on key interest rates.

The Federal Reserve will likely leave the rate at 2 percent, an indication of continued economic problems for the United States and a further decline in the overall demand for crude products.

Light, sweet crude with a September delivery went from $2.22 to $119.19 per barrel in electronic trading after oil stopped at $121.41 a barrel on Monday. The last time oil fell below $120 was May 6.

The high cost of gasoline has caused consumers to alter their habits and seek alternate forms of transportation, leading to a decline in demand. According to a poll conducted by CNN, 75 percent of those responding characterized fuel prices as a "financial hardship."

In figures compiled by AAA on Tuesday the average per gallon price at the pump decline for the 19th day to $3.871. While still a dollar higher than one year ago, the level is still a relieve from the record high of $4.114 set on July 16.

Concern over the price of gas and the effect of emissions on the environment are increasingly driving Americans to opt for smaller, more fuel efficient vehicles or to use mass transit or alternate means of going about their daily business.